Overview

• Federal Reserve Chair Jerome Powell and other officials have suggested that U.S. interest rates are likely to remain high for an extended period, dashing hopes for significant easing in 2024.
• The dollar remained steady, close to a five-and-a-half-month high, while the yen weakened to near 34-year lows, influenced by U.S. monetary policy.
• Market expectations for Federal Reserve rate cuts have been pushed back, with traders now pricing in only 40 basis points of cuts for 2024, a sharp decrease from earlier predictions.
• The strength of the U.S. dollar continues to pressure other currencies, with emerging markets in Asia particularly affected.
• Japanese authorities are closely monitoring the yen's decline, raising concerns about potential intervention if the currency breaches key levels.